Global IPTV Benchmarks:
Learning From Industry Leaders
Benchmark Analysis of solutions and recommendations
in light of market, technology and customers
Published by MRG, Inc. and TBB Consulting, Munich, Germany
March 2006
Executive Summary
IPTV, or ‘Telecom TV’, is the new broadcasting platform using IP packets for video distribution over closed telecom networks. While industry leaders such as Fastweb and Homechoice have been operating for some time, 2006 will see several major launches destined to make IPTV a reality in most key media markets.
This benchmarking study focuses on three crucial issues:
- the kind of service portfolio IPTV needs to offer to win over the audience
- the user interface design principles which will allow IPTV to outperform existing digital TV platforms
- how IPTV should offer the superior range of services – including true interactive TV – that a broadband return channel offers
Sapient & [tbb\*]’s benchmarking study takes ten different IPTV solutions from around the globe and compares them to existing ‘legacy’ digital and interactive TV platforms. The main finding of this ground-breaking study are as follows:
- Most operators are keener on grabbing market share than in developing rich service offerings capable of guaranteeing long-term success. Forthcoming launches which don’t offer more and better TV interactive functionality will fail to make an impact in more competitive markets.
- Without a unique value proposition, the operator runs the risk of competing purely on price, meaning margins could be shaved to such an extent that the product’s overall profitability is threatened.
- IPTV differs from many typical telco products; it requires a mixture of client focus, high quality implementation and an understanding of future trends that hasn’t been evident to date.
- IPTV platforms will have to leverage the advantages offered by the broadband return channel urgently, before cable networks have built their IP service platform to complement existing DVB delivery systems.

Excerpts from study results regarding the product portfolio
of the variousplatforms that have been examined.
- IPTV operators need to emphasise user-interface design and the quality of implementation. Any kind of a “me-too” approach to delivering standard linear multichannel TV will not be enough to lure customers from other platforms.
- IPTV has to open up opportunities, not only for broadcasters and content providers, but for other potential partners as well. The point-to-point nature of network offers has some unique advantages compared to other TV platforms, most noticeably the potential to deliver personalised TV ads.
- Handled right, IPTV can reduce churn – an important consideration for telcos, whose core business is increasingly threatened by Voice-over-IP and price-aggressive competitors, but will not be the all-solving remedy.
- Although revenues delivered by IPTV platforms will initially be relatively small, carefully watching marketing efforts and service evolution of early IPTV deployments to specific media markets will yield rapid learning on how to capture the mass market in time.
Global IPTV: Learning from Industry Leaders is designed to show operators and other executives dealing with the future of TV - and IPTV in particular — what is and isn't working in this area. We're hoping you will take the mass of information and key market insights contained in this comprehensive study, including examples of best and worst practices, to double-check your current strategies and your specific new service roll-out plans.
Table of Contents
0 Executive Summary
1
Introduction
1.1 Overview & definitions
1.1.1 Broadband
1.1.2 Interactive TV (iTV)
1.1.3 Internet Protocol Television (IPTV)
1.2 Platform business model
1.2.1 Satellite
1.2.2 Cable
1.2.3 Telco IP platform
1.2.4 DTT
1.2.5 MobileTV
2 Overview Benchmarking Study
2.1 Purpose of the study
2.2 Selected IPTV solutions
2.3 Duration of the study
2.4 Methodology of the study
2.4.1 Instrument development and study design
2.4.2 Evaluating “Products and Services”
2.4.3 Evaluating “Implementation Quality”
2.4.4 Aggregation of the final results
3 Results Benchmarking Study
3.1 Introduction
3.2 Evaluation: Product & Service Portfolio
3.2.1 Overview
3.2.2 Best practice samples
3.2.2.1 Configuration/Setup
3.2.2.2 Video on Demand
3.2.2.3 Electronic Program Guide
3.2.2.4 Communication Services
3.2.2.5 Walled Garden Offerings
3.2.2.6 Advertising Concepts
3.2.3 Details
3.2.3.1 Company details
3.3 Evaluation: Implementation Quality
pportunities
3.3.1 Overview
3.3.2 Best practice samples
3.3.2.1 Functionality
3.3.2.2 Usability
3.3.2.3 Content
3.3.2.4 Branding
3.3.3 Details
3.3.3.1 Company details
3.4 Summary
4 Market Overview
4.1 Business models and perspectives
4.2 IPTV products, pricing and packaging
4.2.1 Triple-play competitors
4.2.2 Homechoice, United Kingdom
4.2.3 Broadband is the Driver
4.2.4 Now Broadband TV
4.2.5 Attractive price points
4.2.6 Creating an upward migration path
4.2.7 Broadcast TV access as a loyalty enhancer
4.2.8 Marketing Conclusions
4.3 Contents and rights
4.3.1 Rights windows and their development
4.3.1.1 First window VOD for movies
4.3.1.2 Subscription VOD (SVOD) for movies
4.3.1.3 TV series on VOD
4.3.1.4 Music videos on VOD
4.3.2 The impact of new technology on content distribution
4.3.2.1 Download-to-Own
4.3.2.2 The content value chain
4.3.2.3 Content owner aggregation model
4.3.2.4 Direct sale model
4.4 Hardware & retail
4.4.1 New trends in the hardware market
4.4.2 Distributing set-top boxes
4.5 Technology
4.5.1 Network evolution
4.5.2 Compression standards
4.5.3 DRM systems
4.5.4 IPTV Software platforms
4.6 Implementation
4.6.1 User interface
4.6.1.1 Web browser based
4.6.1.2 Custom application
4.6.1.3 Integrating platforms, services and systems
4.7 IPTV, PVRs and the future of advertising
4.7.1 IPTV
4.7.2 PVRs
4.8 iTV usability challenges
4.8.1 Introduction
4.8.2 Targeting populations
4.8.3 Setup and Configuration
4.8.4 Navigation and Orientation
4.8.5 Remote Controlling
4.8.6 EPG: Information inflation on limited screen estate
4.8.7 Future areas of research
5 Main IPTV Markets
5.1 Overview: European IPTV market
5.1.1 Telco incumbent’s IPTV plans
5.1.2 The challengers: Alterantive carriers or regional networks
5.1.3 The platform battle
5.1.4 Focus: Roll-outs in Germany
5.2 Overview: US IPTV market
5.2.1 Introduction
5.2.2 Scalability of large networks a big issue for growth
5.2.3 General market drivers
5.2.3.1 Loss of voice subscribers via fixed line
5.2.3.2 Competition from cable for other triple-play services
5.2.3.3 Interactive programming/services
5.2.3.4 High definition (HD)
5.2.4 US IPTV market size
5.2.5 Future Outlook: Opportunities in the US IPTV market
5.3 Overview: Asian IPTV market
5.3.1 Overview
5.3.2 Why is Asia leading IPTV?
5.3.3 Challenges for launching IPTV in Asia
5.3.3.1 Success factors and lessons learned
5.3.4 Asian IPTV market overview
5.3.4.1 The market in Hong Kong
5.3.4.2 Japan
5.3.5 Taiwan
5.3.6 South East Asia Market Overview
5.3.7 China
5.3.8 Other markets
5.3.9 Future Outlook: IPTV service evolution
6 Summary
6.1 Consumer Perspective
6.1.1 IPTV as the king of iTV approaches?
6.1.2 Additional Value vs. the question of time and money budgets
6.2 Business Perspective
6.2.1 The future competition on Triple Play between Cable and Telco industry
6.2.2 The race between both industries
6.2.3 Snapshot satellite networks
6.2.4 Beyond the infrastructure
6.2.5 Grassroots thrive on digital platforms 6.3 Outlook and Recommendations
7 Appendices
7.1 Company Profiles
7.2 Market Information
7.3 Fact Sheets
7.3.1 Belgacom / Details & Screenshots
7.3.2 T-Online International / Details & Screenshots
7.3.3 Comcast / Details & Screenshots
7.3.4 Fastweb / Details & Screenshots
7.3.5 Homechoice / Details & Screenshots
7.3.6 Telefonica / Details & Screenshots
7.3.7 Premiere / Details & Screenshots
7.3.8 Swisscom / Details
7.3.8.2 Screenshots (unbranded MSTV platform)
7.3.9 France Telecom (MaLIgne) / Details & Screenshots
7.3.10 Maxinetti TV / Details & Screenshots
7.3.11 Now Broadband / Details & Screenshots
7.3.12 Telecom Italia / Details & Screenshots
7.3.13 Sky / Details & Screenshots
7.3.14 Teliasonera / Details
7.3.15 Tele Denmark / Details
7.3.16 Smart Telecom / Details
7.3.17 Hong Kong Broadband (HKBN) / Details
7.3.18 Yahoo BB / Details
7.3.20 NTT / Details
7.3.21 KDD Hikari Plus TV / Details
7.3.22 Chunghwa Telecom / Details & Screenshots
7.3.23 MiTV / Details
7.3.24 Screenshots of other solutions
7.4 Link list
7.5 Literature
7.6 Author Team
7.7 Glossary
Global IPTV Benchmarks: Learning From Industry Leaders — March 2006 is approx. 180 pages with 75 figures and 25 tables. Available in a printed English language hard copy for $1,040.00 USD and a PDF single-departmental license CD for $1,290.00 USD. For more information or to order the report, contact Rob Smith at rsmith@mrgco.com or 408-524-9767.
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